CarMax Earnings Grow 26%

Sep. 26, 2013 2:02 AM ETKMX
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Contributor Since 2013

Aaron Spatz is the writer of SEC Live Filings Digest, detailing the news of companies trading on U.S. stock exchanges. The Filings Digest is but one component of the greater website SEC Live, which specializes in making SEC filings easy to read, research, navigate, and much more.

Originally published at www.seclive.com

Filing in Focus: CarMax 8-K, September 24, 2013

CarMax Inc. (KMX) announced its second quarter financial results, reporting double-digit earnings growth. The used-car retailer, largest in the U.S., reported earnings that increased 26% to $140.3M. Gross profit improved 18% to $434.7M while gross profit per vehicle sold increased by $2 to $2,174. Wholesale gross profits fell 6% to $849 while its wholesale sales jumped almost 9%. In the second quarter, CarMax opened two new locations, hoping to add to its continued used-car sales growth. This quarter CarMax used-car sales increased over 20% but the average selling price slightly fell. President and CEO Tom Folliard commented that the main contributors to its growth were used and wholesale improvements. The company sees used-car demand increasing and with its measured expansion, hopes to capitalize on what it believes to be an expanding used-car market.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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